Energy Act 2004

Citation2004 c. 20
JurisdictionUK Non-devolved


Energy Act 2004

2004 CHAPTER 20

An Act to make provision for the decommissioning and cleaning up of installations and sites used for, or contaminated by, nuclear activities; to make provision relating to the civil nuclear industry; to make provision about radioactive waste; to make provision for the development, regulation and encouragement of the use of renewable energy sources; to make further provision in connection with the regulation of the gas and electricity industries; to make provision for the imposition of charges in connection with the carrying out of the Secretary of State's functions relating to energy matters; to make provision for giving effect to international agreements relating to pipelines and offshore installations; and for connected purposes.

[22nd July 2004]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

1 The Civil Nuclear Industry

Part 1

The Civil Nuclear Industry

Chapter 1

Nuclear decommissioning

Establishment of NDA

Establishment of NDA

S-1 The Nuclear Decommissioning Authority

1 The Nuclear Decommissioning Authority

(1) There shall be a body corporate to be known as the Nuclear Decommissioning Authority (‘the NDA’).

(2) The NDA is not to be treated—

(a) except so far as necessary for the purposes of its function under section 7(2), as performing any duty or exercising any power on behalf of the Crown; or

(b) as enjoying any status, immunity or privilege of the Crown;

and the NDA's property is not to be regarded as property of the Crown, or as held on behalf of the Crown.

S-2 Constitution of NDA

2 Constitution of NDA

(1) The NDA—

(a) shall consist of not fewer than seven and not more than thirteen members; and

(b) shall have a membership comprising both non-executive members and executive members.

(2) The non-executive members shall be—

(a) a chairman appointed by the Secretary of State; and

(b) a number of other persons appointed by the Secretary of State (after consultation with the chairman);

and (subject to subsection (1)) it is for the Secretary of State to determine how many non-executive members there are to be in addition to the chairman.

(3) The executive members shall be—

(a) a person appointed by the non-executive members to be the NDA's chief executive; and

(b) the other persons (if any) appointed by them (after consultation with the chief executive) to be executive members in addition to the chief executive;

and it is for the non-executive members to determine (subject to subsection (8)) whether there are to be executive members in addition to the chief executive, and (if so) how many.

(4) The approval of the Secretary of State is required for the appointment of the chief executive.

(5) Before—

(a) appointing a person to be the chairman or otherwise to be a non-executive member of the NDA, or

(b) approving the appointment of a person to be the chief executive,

the Secretary of State must consult the Scottish Ministers.

(6) Subsection (5) may be satisfied by consultation that took place wholly or partly before the commencement of this section.

(7) If there are executive members in addition to the chief executive, each must be a member of the staff of the NDA.

(8) Where the Secretary of State so provides by a direction to the NDA, the non-executive members must secure that the number of executive members in addition to the chief executive—

(a) is not less than the minimum set by the direction; and

(b) does not exceed the maximum so set;

and the direction must not set a maximum of more than three.

(9) The Secretary of State must exercise his powers under this section to secure, so far as practicable, that the number of executive members is at all times less than the number of non-executive members.

(10) Schedule 1 (which contains further provision about the constitution, staffing and proceedings of the NDA) has effect; and subsections (1) to (9) have effect subject to paragraph 4 of that Schedule.

Principal function of NDA

Principal function of NDA

S-3 Designated responsibilities

3 Designated responsibilities

(1) The principal function of the NDA shall be to have responsibility for securing—

(a) the operation, pending the commencement of their decommissioning, of designated nuclear installations;

(b) the decommissioning of those and other designated nuclear installations;

(c) the cleaning-up of designated nuclear sites;

(d) the operation of designated facilities for treating, storing, transporting or disposing of hazardous material;

(e) the treatment, storage, transportation and disposal, in designated circumstances, of hazardous material; and

(f) the decommissioning of designated installations comprised in NDA facilities.

(2) The responsibilities of the NDA under this section are responsibilities to be discharged by the performance of its duties under sections 15 and 16.

(3) A designation for the purposes of this section—

(a) of an installation, site or facility, and

(b) of the circumstances in which the NDA is to have responsibility for securing the treatment, storage, transportation or disposal of matter or waste,

has (subject to section 6) to be in the form of a direction given by the Secretary of State to the NDA.

(4) A direction must not give the NDA a responsibility mentioned in this section in relation to an installation, site or facility unless the person with control of it at the time when the direction is given is—

(a) a Crown appointee;

(b) the UKAEA;

(c) a publicly owned company;

(d) the NDA itself; or

(e) a person who has consented to the giving of the direction.

(5) A direction designating an installation, site or facility must specify the paragraph or paragraphs of subsection (1) for the purposes of which it is being designated.

(6) But, except in so far as the direction containing the designation otherwise provides, the designation of a principal nuclear site for cleaning-up is to have effect for the purposes of this Chapter as including a designation, as an installation to be decommissioned, of every installation situated in or on that site.

(7) The Secretary of State must—

(a) lay before Parliament a copy of every direction containing a designation;

(b) publish the contents of every such direction in the manner which, in his opinion, is most appropriate for bringing it to the attention of persons likely to be affected by it; and

(c) send a copy of every direction giving the NDA a responsibility in relation to an installation, site or facility to the person with control of that installation, site or facility.

(8) The Scottish Ministers must lay before the Scottish Parliament a copy of every direction which by virtue of section 6 is given jointly by them and the Secretary of State.

(9) The Secretary of State may exclude—

(a) from what he lays before Parliament and publishes under this section, and

(b) from what is to be laid before the Scottish Parliament by the Scottish Ministers,

anything the publication of which he considers to be against the interests of national security.

S-4 Additional responsibilities under designating directions

4 Additional responsibilities under designating directions

(1) Where the NDA is given a responsibility for securing the operation of an installation or facility, a direction may also give the NDA further responsibilities in relation to the management of the site where that installation or facility is situated.

(2) Where the NDA is given a responsibility in relation to a principal nuclear site, a direction may give the NDA further responsibilities in relation to the operation or management of any one or more of the following—

(a) research facilities situated in or on that site;

(b) facilities other than research facilities which are situated in or on that site and are neither nuclear installations nor NDA facilities;

(c) other land (whether or not adjacent to that site) which is owned or occupied, together with it, by the person with control of the principal nuclear site; and

(d) facilities of any description situated in or on such other land.

(3) The NDA is not to be given further responsibilities under subsection (1) or (2) except where the Secretary of State considers it appropriate to do so—

(a) for the purpose of facilitating the carrying out by the NDA of any of its functions; or

(b) for a purpose otherwise incidental to the carrying out of those functions.

(4) Where a direction gives the NDA a responsibility for securing the treatment, storage, transportation or disposal of matter or waste, it may also give the NDA responsibility for securing the design, construction and operation of a facility for that purpose.

(5) Subsection (4) of section 3 applies to giving the NDA a responsibility mentioned in this section as it applies to giving it a responsibility mentioned in that section.

(6) In this section ‘direction’ means a direction under section 3.

S-5 Supplemental provisions of designating directions

5 Supplemental provisions of designating directions

(1) A direction comes into force at the time which is specified in the direction or determined in accordance with provision contained in it.

(2) A direction giving the NDA responsibilities in relation to an installation, site or facility which—

(a) is a nuclear installation, a principal nuclear site or a facility situated in or on a principal nuclear site, but

(b) is not one in relation to which the NDA is to have a financial responsibility under section 21,

may require the person with control of the installation, site or facility to make payments to the Secretary of State.

(3)...

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